Moscow Exchange Group has completed centralization of its clearing activity on the basis of CJSC JSCB National Clearing Centre (NCC). To NCC - the subsidiary of the Group - from CJSC Clearing Centre RTS (CC RTS) was transferred clearingin the FORTS derivatives market and in the Standard sector of the stock market of Moscow Exchange (including clearing of sale-and-buy transactions and repo trades), clearing in the derivatives markets of OJSC Moscow Energy Exchangeand OJSC Saint Petersburg Exchange, as well as clearing of securities’transactions in trading of OJSC Saint Petersburg Exchange.
As a result of the centralization, starting from December 3, 2012, NCC has been fulfilling the functions of the central counterparty for all derivativescontracts, concluded in tradings on OJSC Moscow Exchange, OJSC Moscow Energy Exchangeand OJSC Saint Petersburg Exchange. At the same time CC RTS has ceaseditsclearing services in the derivatives market and in the Standard market sector, as well as the service for FX market transactions in the RTS Money system.
Transferring of clearing from CC RTS to NCC was fulfilled without any changes in the overall tariff amounts for clearing services. The clearing time schedule remained the same, the risk management system was not changed and it ensures a reliable risk management in the serviced markets. Liability settlements of clearing participants and NCC in monetary terms and in securities will be executed by NKO CJSC National settlement depositary.
“Completion of the clearing consolidation process on the basis of NCC is a significant event not only for Moscow Exchange Group, but for the entire Russian financial market. Now clearing services to the customers of the Exchange, as well as the central counterparty service in all market segments are rendered by a reliable and highly-capitalized bank organization, which is strictly supervised by the Bank of Russia. It is another important step toward bringing of the Russian financial infrastructure into compliance with the most progressive international standards”, says Alexey Khavin, the Chairman of the Board of NCC.
In the opinion of the Deputy Chairman of the Board of Management of Moscow Exchange Andrey Shemetov, this step is great progress for Moscow Exchange and an indicator of efficiency of MICEX-RTS merger. “I’m sure that transfer of clearing to NCC will give another impulse for development of the Russian market, due, among other factors , to the growth of trading activity of foreign participants, who will be able to set up higher limits forthe clearing organization ”, points out Andrey Shemetov.
CJSC JSCB National Clearing Centre, a subsidiary of Moscow ExchangeGroup, was established in 2005. NCC executes clearing activity and fulfills the functions of the central counterparty in FX and stock markets of the Group. The shareholder of the bank is the Open Joint Stock Company Moscow Exchange MICEX-RTS (100%).
Since November of 2009 NCC has been a member of the European Association of ClearingHouses – CentralCounterparties (EACH), and since September of 2011 – a member of the World Association of Central Counterparties– CCP12.
NCC has a license of the Bank of Russia for execution of bank transactions with funds in rubles and foreign exchange and a license, issued by the Federal Financial Markets Service, of a professional securities market participant for clearing activities. Thetotal capitalof the bank as of November 1, 2012,exceeds 12 billion rubles, including registered capital of6 billion 170 million rubles.